>> Everywhere we look, we are seeing the effects of the American economic miracle.>> President Trump has something to boast about, but for how long? Numbers released Friday show the US economy growing at it's fastest pace in nearly four years. Gross domestic product, the broadest measure of economic activity, rose 4.1% in the April to June period, led by a surge in consumer spending.
A rush by American farmers to sell soybean exports to China ahead of retaliatory tariffs that took effect in early July. And manufacturers shipping out other exports for the same reason, also gave the report an upbeat shine. I'm Conway Gittens in New York. Trump's victory lap and talk of a economic ramp-up is falling flat on Wall Street, however.
Economists just don't think this rate of growth is sustainable. First of all, the effects of the tax cuts are likely to wane as we move forward into the year. And the trade spat is more likely to take away than add to economic growth. But that's not stopping the president from declaring his policies a win.
>> We're on track to hit the highest average annual growth rate in over 13 years. And I will say this right now and I'll say it strongly, as the trade deals come in one by one, we're going to go a lot higher than these numbers.>> At the same time Trump is taking credit for boosting the economy, he's also boosting something else, the federal deficit.
Government spending was on the rise last quarter. Couple that with lower government revenues from the tax cut, and the national deficit is well on it's way to $1 trillion. And that will be a drag on the economy when the bill eventually comes due.